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Mozambique Issues Over $46M in Five-Year Treasury Bonds

Mozambique Issues Over $46M in Five-Year Treasury Bonds

The Mozambican Stock Exchange (BVM) announced that this week the state placed 3 billion meticals (46.5 million dollars) in an internal stock market issue of Treasury Bonds with a maturity of five years.

In a statement, the entity said that the operation took place on 17 December, and that the bids submitted by the Specialised Treasury Bond Operators indicate that the demand and supply ratio was 76.6%, with overall demand equal to the total amount placed.

‘This issue of Treasury Bonds, which consisted of the first reopening of the 13th series of 2024, for direct subscription by Specialised Operators, authorised the placement of up to 4 billion meticals (65 million dollars), with a nominal interest rate of 13.5 percent during the first four half-yearly interest payments and variable in the last six payments,’ he said.

This is the second operation of its kind in the space of a week, after Mozambique placed 1.2 billion meticals on 10 December in another domestic stock market issue – the 13th series of 2024 Treasury Bonds with a maturity of five years.

Recently, the Bank of Mozambique (BoM) warned of high pressure caused by the state’s domestic debt, which has already grown by 90.3 billion meticals (1.4 billion dollars) this year to 402.7 billion meticals (6.2 billion dollars).

‘The pressure on domestic public debt remains high. This, excluding loan and lease contracts and overdue liabilities, stands at 402.7 billion meticals, representing an increase of 90.3 billion meticals,’ said the central bank.

In a document released after the ordinary meeting of the Monetary Policy Committee (CPMO) on 30 September, the BoM added that international reserves are currently at comfortable levels.

‘Gross international reserves continue to grow and are at levels sufficient to cover more than five months of imports of goods and services,’ the document added.

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